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Some buyers have pulled out of deals, while others are attempting to renegotiate prices after UK voted to leave EU

Homebuyers spooked by the UK’s decision to leave the EU are pulling out of deals or attempting to renegotiate prices, according to property professionals, as the housing market suffers Brexit vote aftershocks.

One property developer in central London, which had offered a “Brexit clause” allowing nervous buyers to pull out of deals in the event of a leave vote said it was allowing buyers to withdraw and keep their deposits. David Humbles, managing director of the luxury Two Fifty One development, said: “We can confirm that a few purchasers have decided not to proceed given the uncertainty of the market. However, the majority are continuing with their purchase and the marketing strategy to offer the pledge at the launch was a worthwhile exercise.”

Consulting group KPMG has forecast that prices could fall by 5% outside London, and more in the capital, while commentators said a slowdown in sales which started ahead of the referendum was likely to continue. Fearful of landing in immediate negative equity, some buyers have decided to put their purchases on ice.

"The vote for Brexit has sent Britain and Europe spinning. The instant reaction of the EU has been an insistence on immediate and irrevocable withdrawal and a point-blank refusal to negotiate a single concession.

Ever since the wilful destruction of British industry by Thatcher's government in the 1980s, used as a deliberate policy to smash the power of the trade unions (a policy cheerfully maintained under Blair's subsequent "New Labour" government), the old manufacturing base of the British economy has gone.

There are virtually no shipyards, coal mines, steelworks or car plants left. What then will be the basis of Britain's revived role as a "trading nation"? What can Britain offer for sale? All that is left is the banks, whose crooked practices already so recently plunged the economy into catastrophe. Britain is now little more than just another money-laundering tax haven offshoreisland, siphoning up the dirty money of the world's oligarchs and gangsters into a booming property market that shuts out the local population from any hope of ever buying or even renting any living space.

The only heavy industry that still barely survives in Britain consists of a handful of factories owned by foreign companies like Honda, or - until its recent announcement that it was shutting it down - Tata Steel. These companies had strategically targeted a British location for no other reason than precisely as a stepping stone into the European market. Once Britain leaves the EU, these companies will inevitably pull out.

Meanwhile, the sharp fall in the value of the pound will send the price of fuel, food and other essentials sky-high. So Brexit could well bring in its wake the added horrors of mass unemployment and soaring inflation - both of them problems which the British economy had avoided up to now since the start of the 2008 recession.

The victorious Brexit campaign has already in effect legitimised widespread moods of xenophobia and bigotry which had previously been largely muted. In conditions of intensified economic hardship, these could well now erupt into a huge rash of verbal and physical street attacks on immigrants.

To their lasting dishonour, nearly all the left groups had opportunistically jumped on the Brexit bandwagon, using as justification their quite justified abstract characterisation of the EU as an instrument for naked rule by the multinational monopolies.

They argued, correctly, that the vote to leave the EU represented a revolt against austerity; but it was a blind and perversely misdirected outcry against years of low wages, zero hours dead-end jobs, homelessness, welfare cuts and unremitting cuts.

It was a classic case of the same old diabolical "divide-and-rule" manoeuvre. The media had succeeded in diverting their despair into safe channels by scapegoating immigrants: largely migrant workers from Eastern Europe and the handful of refugees allowed in from current war zones.

In the process, like every authoritarian regime in the world, or in the best traditions of British imperialism (as practised so skilfully over the ages in Ireland, India, Palestine, etc.), the rage of the poor was neatly deflected from the ruling class to attacks on a despised minority.

Britain has entered into a dangerous, volatile period; a period of sharp and sudden shocks. It has witnessed huge trade-union demonstrations, student upsurges, youth riots, political instability, even a political assassination.

Both the traditional political parties are on the verge of splits. The only certainty is that more such events are imminent, probably still more shocking and more violent."

Listening to Any Answers on Radio 4. Interesting how the generational gap between leave and remain kept coming up. The remain younger vote or non-vote felt seriously betrayed by their seniors( one guy had stopped talking to his parents!). Totally understand this sentiment. It's not even about mortgaging the futures of the young as much as beggaring them. Furthermore, I imagine many of the 100,000 who signed the petition for a second referendum (taking it to 1.5 million!) over the half hour that the programme was on no less, were the young. In years to come, the backlash from the young on the so called establishment will be ferocious. Who could blame them?

__________________
Duffle Coat, fell at the first fence in the Grand National in 1977, the year Red Rum won his third National.

Some buyers have pulled out of deals, while others are attempting to renegotiate prices after UK voted to leave EU

Homebuyers spooked by the UK’s decision to leave the EU are pulling out of deals or attempting to renegotiate prices, according to property professionals, as the housing market suffers Brexit vote aftershocks.

One property developer in central London, which had offered a “Brexit clause” allowing nervous buyers to pull out of deals in the event of a leave vote said it was allowing buyers to withdraw and keep their deposits. David Humbles, managing director of the luxury Two Fifty One development, said: “We can confirm that a few purchasers have decided not to proceed given the uncertainty of the market. However, the majority are continuing with their purchase and the marketing strategy to offer the pledge at the launch was a worthwhile exercise.”

Consulting group KPMG has forecast that prices could fall by 5% outside London, and more in the capital, while commentators said a slowdown in sales which started ahead of the referendum was likely to continue. Fearful of landing in immediate negative equity, some buyers have decided to put their purchases on ice.

House prices could do with a bit of heat taken out of them. Esp in London. As for "luxury housing" they are not being bought by a typical family of 4 and not for short term investment either, but for long term financial investment.

__________________Bliss it was that dawn to be alive.Prepare for an immediate #Brexit!!
A Good Old Fashioned Palace Supporter since 1963ROLL ON DEATH !! "WE LEAVE THE EU MARCH 2019"

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Quote:

Originally Posted by cdm61

Saw this on a Facebook page - quite a sobering outlook...

"The vote for Brexit has sent Britain and Europe spinning. The instant reaction of the EU has been an insistence on immediate and irrevocable withdrawal and a point-blank refusal to negotiate a single concession.

Ever since the wilful destruction of British industry by Thatcher's government in the 1980s, used as a deliberate policy to smash the power of the trade unions (a policy cheerfully maintained under Blair's subsequent "New Labour" government), the old manufacturing base of the British economy has gone.

There are virtually no shipyards, coal mines, steelworks or car plants left. What then will be the basis of Britain's revived role as a "trading nation"? What can Britain offer for sale? All that is left is the banks, whose crooked practices already so recently plunged the economy into catastrophe. Britain is now little more than just another money-laundering tax haven offshoreisland, siphoning up the dirty money of the world's oligarchs and gangsters into a booming property market that shuts out the local population from any hope of ever buying or even renting any living space.

The only heavy industry that still barely survives in Britain consists of a handful of factories owned by foreign companies like Honda, or - until its recent announcement that it was shutting it down - Tata Steel. These companies had strategically targeted a British location for no other reason than precisely as a stepping stone into the European market. Once Britain leaves the EU, these companies will inevitably pull out.

Meanwhile, the sharp fall in the value of the pound will send the price of fuel, food and other essentials sky-high. So Brexit could well bring in its wake the added horrors of mass unemployment and soaring inflation - both of them problems which the British economy had avoided up to now since the start of the 2008 recession.

The victorious Brexit campaign has already in effect legitimised widespread moods of xenophobia and bigotry which had previously been largely muted. In conditions of intensified economic hardship, these could well now erupt into a huge rash of verbal and physical street attacks on immigrants.

To their lasting dishonour, nearly all the left groups had opportunistically jumped on the Brexit bandwagon, using as justification their quite justified abstract characterisation of the EU as an instrument for naked rule by the multinational monopolies.

They argued, correctly, that the vote to leave the EU represented a revolt against austerity; but it was a blind and perversely misdirected outcry against years of low wages, zero hours dead-end jobs, homelessness, welfare cuts and unremitting cuts.

It was a classic case of the same old diabolical "divide-and-rule" manoeuvre. The media had succeeded in diverting their despair into safe channels by scapegoating immigrants: largely migrant workers from Eastern Europe and the handful of refugees allowed in from current war zones.

In the process, like every authoritarian regime in the world, or in the best traditions of British imperialism (as practised so skilfully over the ages in Ireland, India, Palestine, etc.), the rage of the poor was neatly deflected from the ruling class to attacks on a despised minority.

Britain has entered into a dangerous, volatile period; a period of sharp and sudden shocks. It has witnessed huge trade-union demonstrations, student upsurges, youth riots, political instability, even a political assassination.

Both the traditional political parties are on the verge of splits. The only certainty is that more such events are imminent, probably still more shocking and more violent."

People are wankers. You only have to look at the thrust of both campaigns to see what they were aiming at. The deeper discussions about things like agricultural policy, protecting our green spaces and wildlife, plus things like housing and infrastructure were largely ignored.

"You'll lose money! Britain will be overrun by Turks! Britain will be overrun by racists! Your children will all die horribly in poverty! We'll get rid of all those pesky immigrants! Gideon will punish you with tax rises!"

Sod off. If democracy fails as a result and riots ensue, good. Get rid of the monarchy, get rid of the wankers that rule and take back all the land that such a small % "own". A dictatorship would do us good, as long as someone like Chris Packham was leading it

House prices could do with a bit of heat taken out of them. Esp in London. As for "luxury housing" they are not being bought by a typical family of 4 and not for short term investment either, but for long term financial investment.

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Several bidders for Tata Steel's British operations are close to abandoning talks with their Indian owner as the outcome of the EU referendum threatens to deepen the crisis enveloping the UK's biggest steel producer.

Sky News has learnt that the billionaire tycoon Wilbur Ross, who is among seven bidders shortlisted for Tata Steel's UK business, has signalled that exiting the EU would diminish the prospects of him pursuing a takeover.

A number of other prospective buyers are understood to have similar concerns about the potential impact of Brexit on global demand for steel, the robustness of new trade deals negotiated by the Government, and the ability to sell steel produced in the UK in the European single market.

"Wilbur has been reasonably open that this deal is far less attractive if Brexit happens," said a person who has discussed the Tata Steel situation with Mr Ross.

It fails at the start. House price falls = negative equity. Even with your 5% fall Most people have plenty of equity in their houses and will not go anywhere near negative equity. unless they overstretched at the start or remortgaged.

__________________Bliss it was that dawn to be alive.Prepare for an immediate #Brexit!!
A Good Old Fashioned Palace Supporter since 1963ROLL ON DEATH !! "WE LEAVE THE EU MARCH 2019"

It fails at the start. House price falls = negative equity. Even with your 5% fall Most people have plenty of equity in their houses and will not go anywhere near negative equity. unless they overstretched at the start or remortgaged.

Not the ones who have been buying in the last six months and people will start to postpone their mortgages in fear of price falls....

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Several bidders for Tata Steel's British operations are close to abandoning talks with their Indian owner as the outcome of the EU referendum threatens to deepen the crisis enveloping the UK's biggest steel producer.

Sky News has learnt that the billionaire tycoon Wilbur Ross, who is among seven bidders shortlisted for Tata Steel's UK business, has signalled that exiting the EU would diminish the prospects of him pursuing a takeover.

A number of other prospective buyers are understood to have similar concerns about the potential impact of Brexit on global demand for steel, the robustness of new trade deals negotiated by the Government, and the ability to sell steel produced in the UK in the European single market.

"Wilbur has been reasonably open that this deal is far less attractive if Brexit happens," said a person who has discussed the Tata Steel situation with Mr Ross.

He is just talking the price down, trying to get a cut price bargain. Nothing to see here.

__________________Bliss it was that dawn to be alive.Prepare for an immediate #Brexit!!
A Good Old Fashioned Palace Supporter since 1963ROLL ON DEATH !! "WE LEAVE THE EU MARCH 2019"

Bubbs has hit the nail on the head, we are obsessed with finance, markets, exchange rates, futures and growth forecasts. These sort of things used to be bubbling away in the background but in recent history they are all we hear about.
The economy used to be a means to an end, now it is the end in itself.
Its wrong I tell you.

Well, it doesn't seem to have helped people actually understand them.
Though I know the BBS is full of economics geniuses.

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Posts: 17,921

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Quote:

Originally Posted by cdm61

Not the ones who have been buying in the last six months and people will start to postpone their mortgages in fear of price falls....

Tough ******* shit if you've borrowed beyond your means. ****s me of when people are stupid, then those of us who are careful with our finances have to foot the bill.

I could've borrowed 400k last time I moved, but we didn't need more than 3 bedrooms or want to have mortgage payments that stretched us, so we stuck at 130k. I also have a 10-year fixed rate that I took out 5 months ago.

If a couple of % on the interest rate screws you I have no sympathy whatsoever.